Answer:
increase expenses and decrease net income
Explanation:
Research and development costs must be treated as normal operating expenses and they must be included in the income statement. They are treated similarly to other operating expenses.
US GAAP requires R&D to be treated as expenses simply because the future value of R&D is very hard to determine, so they cannot be capitalized (and amortized).
Answer:
C
Explanation:
The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.
Answer: D) Daily Compounding
Explanation:To earn as much interest as possible, Anthony should open a savings account that earns compound interest and has the highest interest rate.
Daily compounding is compounded every day, hence Anthony will get the best rate of return on his interest with this.
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Answer:
False
Explanation:
Among the various reasons, Japan is a high country saving rate relative to investment that cause a significant trade surplus. A higher saving rate generally corresponds to trade surplus. Japan socio-political and economical conditions reveals that people have a high propensity to save. Many reason like high life expectancy rate, underdeveloped social security and tax incentives for income from capital and frequent environmental hazards attributed to the high rate of saving in Japan.
With the high rate of savings relative to domestic investment, Japan invest more funds in other countries(net capital outflow increases). This is matched with high net exports leading to a trade surplus.